Planning Guidance for Contractor Work Force Restructuring

DEPARTMENT OF ENERGY

Planning Guidance for Contractor Work Force Restructuring

AGENCY: Department of Energy.

ACTION: Notice of Interim Planning Guidance.

-----------------------------------------------------------------------

SUMMARY: The Department of Energy today publishes for public comment

interim Planning Guidance that has been issued to Department of Energy

field organizations and other components responsible for planning and

implementing contractor work force restructuring at defense nuclear

facilities and other DOE facilities. The Guidance includes procedures,

interpretations, and policies that the field organizations should use

in developing site-specific plans consistent with section 3161 of the

National Defense Authorization Act for Fiscal Year 1993. The Secretary

has decided that the section 3161 planning process should apply, to the

extent practicable and allowed by law, to work force restructuring at

all Department of Energy facilities.

[[Page 8594]]

DATES: Written comments (7 copies) are due on or before May 6, 1996.

The Guidance is effective upon publication in the Federal Register.

ADDRESSES: Comments must be submitted to: U.S. Department of Energy,

Office of Worker and Community Transition, WT-1, 1000 Independence

Avenue, S.W., Washington, D.C. 20585.

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Sullivan, U.S. Department

of Energy, Washington, D.C. 20585, phone: 202-586-0452.

SUPPLEMENTARY INFORMATION:

I. Background

The Department of Energy (Department or DOE) has broad authority to

develop generally applicable policies covering all aspects of defense

nuclear facilities. The Atomic Energy Act, 42 U.S.C. 161(i)(3) and

2201(p). In addition, section 3161 of the National Defense

Authorization Act for Fiscal Year 1993, 42 U.S.C. 7274h, requires the

Department to develop a plan for restructuring the work force at a

defense nuclear facility whenever the DOE determines that a change in

the work force is necessary. Defense nuclear facilities within the

meaning of section 3161 include facilities conducting atomic energy

defense activities involving production or utilization of special

nuclear material, nuclear waste storage or disposal facilities, testing

and assembly facilities, and atomic weapons research facilities. The

Department has issued the Guidance published in this notice to assist

field organizations in developing site-specific plans consistent with

section 3161 and other applicable laws and is voluntarily publishing

this Guidance for public comment. The Department intends to revise the

Guidance periodically as appropriate in light of public comments and

experience. Various inadvertent errors and possible ambiguities in the

Guidance distributed on April 5, 1995, have been corrected and

clarified in this version. One significant respect in which the

Guidance has been clarified is to make it clear that all notices of

involuntary reductions in force of more than 100 employees at a single

site require specific Secretarial approval. Secretarial approval of a

work force restructuring plan does not authorize a site to give

involuntary separation notices without specific Secretarial approval

for the involuntary separations, although specific Secretarial approval

of the involuntary separations may be provided at the same time as

approval of the plan. Section 3161 furthers President Clinton's

``Putting People First'' policy, which emphasizes the importance of

conserving and efficiently redirecting the Government's valuable human

resources from pursuit of the Cold War to new missions. Some DOE

defense nuclear facilities are being downsized as a result of decisions

to reduce the nuclear weapons stockpile and terminate production of

nuclear weapons. Another major change at DOE defense nuclear facilities

has been the increase in recent years in environmental restoration and

waste management activities. At other defense nuclear facilities, work

force modification is needed because of different kinds of shifts in

the mission of the facility. Still other work force changes are the

consequence of reductions in the Department's budget. The essential

requirement of section 3161 is that the DOE must develop work force

restructuring plans to minimize the social and economic impacts of work

force changes at defense nuclear facilities.

Section 3161(c) sets forth six objectives that shall guide the

Department in preparing a work force restructuring plan for a defense

nuclear facility. First, changes in the work force at a DOE defense

nuclear facility: (1) should be accomplished so as to minimize social

and economic impacts; (2) should be made only after the provision of

notice of such changes not later than 120 days before the commencement

of such changes to such employees and the communities in which such

facilities are located; and (3) should be accomplished, when possible,

through the use of retraining, early retirement, attrition, and other

options that minimize layoffs.

Second, employees whose employment in positions at such facilities

is terminated shall, to the extent practicable, receive preference in

any hiring by the DOE (consistent with applicable employment seniority

plans or practices of the DOE and with section 3152 of the National

Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law

101-189; 103 Stat. 1682)). Third, employees shall, to the extent

practicable, be retrained for work in environmental restoration and

waste management activities at DOE facilities.

Fourth, the Department should provide relocation assistance to

employees who are transferred to other DOE facilities as a result of

the plan.

Fifth, the Department should assist terminated employees in

obtaining appropriate retraining, education, and reemployment

assistance (including employment placement assistance).

Sixth, the Department should provide local impact assistance to

communities that are affected by the restructuring plan and coordinate

the provision of such assistance with (1) programs carried out by the

Department of Labor pursuant to the Job Training Partnership Act (29

U.S.C. 1501 et seq.); (2) programs carried out pursuant to the Defense

Economic Adjustment, Diversification, Conversion, and Stabilization Act

of 1990 (Part D of Public Law 101-510; 10 U.S.C. 2391 note); and (3)

programs carried out by the Department of Commerce pursuant to title IX

of the Public Works and Economic Development Act of 1965 (42 U.S.C.

3241 et seq.).

In establishing the Task Force on Worker and Community Transition

on April 21, 1993, the Secretary of Energy directed that, for reasons

of fairness, the planning process set forth in section 3161 should be

applied, to the extent practicable and permitted by law, wherever work

force restructuring takes place in the Department. On April 23, 1993,

the Task Force issued draft General Planning Guidelines for Work Force

Restructuring.

The formulation and execution of any work force restructuring plan

is subject to the availability of appropriations, and differences in

benefits provided at different sites or to defense and non-defense

workers may reflect different levels of available funding.

II. Stakeholder Participation in Work Force Restructuring Planning

Pursuant to section 3161, all aspects of a defense nuclear facility

work force restructuring plan, including the mix and level of benefits

offered, shall be developed in consultation with affected DOE employees

(including employees of Department contractors and subcontractors),

representatives of collective-bargaining units of Department employees,

interested Federal, State, and local government agencies, educational

institutions and other institutions and groups in communities that will

be affected by restructuring.

The Guidance provides that draft plans shall be distributed for

stakeholder comment at appropriate points during the planning process.

The Department will not approve Plans developed by field organizations

unless there is a showing of meaningful stakeholder involvement in the

planning process. The Guidance also identifies specific methods field

organizations may use to obtain stakeholder input in the development of

site-specific plans.

[[Page 8595]]

In addition to site-specific stakeholder involvement, the

Department has involved stakeholders in work force restructuring

policymaking at the national level. The Guidance published today

reflects this extensive dialogue with stakeholders. Shortly after

section 3161 was enacted, the Secretary of Energy established a Task

Force on Worker and Community Transition to implement the new law and

to address more generally the impacts of defense conversion. The Task

Force held a National Stakeholders meeting on June 11, 1993, and

published a report on July 29, 1993, that summarized issues raised by

the stakeholders.

Based on continued stakeholder input and lessons learned from the

ongoing development of site work force restructuring plans, the

Department issued revised draft planning guidelines on March 24, 1994.

Additional policy guidelines were subsequently included in a Report on

the Department's Worker and Community Transition Program, issued by the

Under Secretary on August 24, 1994. In September 1994, the Office of

Worker and Community Transition replaced the Task Force and held a

second National Stakeholders meeting on November 15-16, 1994. A third

National Stakeholders meeting was held in Denver on April 20-21, 1995,

and a fourth was held in Albuquerque on September 13-15, 1995. Another

National Stakeholders meeting will be held in March 1996 in Atlanta.

III. The General Purpose of the Interim Guidance

The interim Guidance published today was prepared by the

Department's Office of Worker and Community Transition to plan for and

mitigate the impacts of changes in the Department's contractor work

force. The Guidance was developed to assist DOE field organizations

that are primarily responsible for developing section 3161 plans. The

Guidance sets forth generally non-prescriptive procedures for

coordinating Department activities related to section 3161 planning,

and contains interpretations and policy statements to help DOE field

organizations implement section 3161 consistently with applicable

contract provisions and other laws and obligations of the Department.

IV. Request for Public Comment

Although not required by law, the Department has chosen to publish

this revised interim Guidance for public comment so that all

stakeholders and the general public have an opportunity to influence

the general policies the Department is following during the section

3161 planning process. The Department will publish final Guidance with

appropriate revisions in light of the public comments and experience

with the interim Guidance.

Although the public is invited to comment on all aspects of the

Guidance, the Department is especially interested in receiving views on

the following provisions:

A. The ``Trigger'' or Threshold for Section 3161 Planning

Section 3161 directs the Department to develop a plan when it is

determined that ``a change in the work force at a defense nuclear

facility is necessary,'' and to submit the plan to Congress. The

Department has interpreted section 3161 to apply only where a change in

the nature or structure of the work force may affect 100 or more

employees at a site within a 12-month period. While a formal plan is

not required below this threshold, the Department will consider the

objectives of section 3161 during the planning process in such cases.

B. Hiring Preference for ``Employees Who Participated in Efforts To

Maintain the Nation's Nuclear Deterrent During the Cold War''

The Guidance lists several benefits which field organizations

should consider offering displaced workers, taking into account the

skills of the workers at the affected site, overall budget constraints,

contractual provisions, applicable pension and other benefits plans,

and other legal requirements and obligations. However, the Guidance

directs field organizations to provide a specific benefit--a hiring

preference--to employees who participated in efforts to maintain the

Nation's nuclear deterrent during the Cold War. This class of

employees, in whom the Department has invested heavily to develop

skills important to the Nation, is defined as employees who were

working for a DOE contractor on September 27, 1991, the day the first

unilateral reduction of the Nation's nuclear weapons stockpile was

announced, and who have continued to work for DOE since that date, as

set forth in greater detail in the attached Appendix D of the Guidance,

which has been revised to correct inadvertent omissions in Appendix G

as originally distributed on April 5.

The Guidance provides that employees who participated in efforts to

maintain the Nation's nuclear deterrent during the Cold War, whose

employment is terminated involuntarily (except those terminated for

cause) and who are qualified for the job at the time the work is to

begin, shall receive preference in any hiring conducted by the DOE and

its contractors and subcontractors (whose contracts equal or exceed

$500,000 in value) to fill vacancies, to the extent practicable and

consistent with veterans' preference, other applicable law, employment

seniority plans, and other legally binding preferences or practices, as

set forth in greater detail in Section V.A. of the Guidance.

Nothing in the Guidance is intended to obligate a contractor to

hire an employee who is not qualified to perform the work. The

preference is not applicable in situations where positions become

available and existing employees are offered a right of first refusal

to those positions, e.g., where one contractor has replaced another and

existing employees are offered a right of first refusal to employment

with the replacement contractor.

C. Retraining for New Missions Including Cleanup

Section 3161 directs the Department, to the extent practicable, to

retrain employees for environmental restoration and waste management

activities at the site of their employment or at other DOE facilities.

Eligibility for retraining benefits is not limited to employees who

have been terminated during a work force restructuring.

The Guidance provides, in the ``General Guidance'' section, that

early in the planning process, an analysis should be made of the

facilities' future mission and the work force skills and capabilities

that will be needed to fulfill that mission. The analysis should

compare those future requirements with the skills and capabilities of

current workers at the facility to identify workers who possess

critical skills that will be needed for the future mission and to

determine the retraining that will be necessary to provide existing

employees with these skills.

Accordingly, the ``Specific Benefits for Consideration'' section

provides that work force planning should identify training needs and

provide the training to prepare the existing work force for the DOE's

new missions (including environmental restoration and waste

management). Furthermore, this section recommends a standard for

determining whether retraining of employees for new missions, including

cleanup, should be considered ``practicable'' under section 3161(c)(3).

The recommended standard is that the training should be aimed at jobs

for which (1) vacancies are expected in the near term and (2) training

of current employees to fill those vacancies can be completed

[[Page 8596]]

within not more than six months at a cost of not more than $10,000.

(This training is different from the educational assistance provided

for separated employees.)

V. Opportunity for Public Comment

Interested persons are invited to participate in this proceeding by

submitting data, views, or comments with respect to today's notice.

Seven copies of written comments should be submitted to the address

indicated in the ADDRESSES section of this notice. Comments should be

identified on the outside of the envelope and on the documents

themselves with the designation ``Contractor Work Force Restructuring

Guidance.'' In the event any person wishing to provide written comments

cannot provide 7 copies, alternative arrangements can be made in

advance with the Department.

All comments received will be available for public inspection as

part of the administrative record on file for this matter in the

Department of Energy Freedom of Information Office Reading Room, IE-

090, Forrestal Building, 1000 Independence Avenue, S.W., Washington,

D.C. 20585, 202-586-6020, between 9 a.m. and 4 p.m., Monday through

Friday, except Federal holidays.

Issued in Washington, D.C. on February 1, 1996.

Robert W. DeGrasse, Jr.,

Director, Office of Worker and Community Transition.

Interim Planning Guidance for Contractor Work Force Restructuring

Table of Contents

I. INTRODUCTION

II. LEGISLATIVE PROVISIONS

III. GENERAL GUIDANCE

A. Threshold for Plans

B. Timing of Plans

C. Work Force Planning

D. Local Impact Assistance to Communities

E. Stakeholder Input to Plans

F. Role of Counsel

G. The Role of DOE Contractors

H. Approval of Plans

I. Plan Updates

J. Funding for Plans

IV. SPECIFIC BENEFITS FOR CONSIDERATION

A. Early Retirement

B. Voluntary Separation Incentives

C. Educational Assistance for Separated Employees

D. Relocation Assistance

E. Retraining for New Missions Including Cleanup

F. Displaced Workers Medical Benefits

V. MANDATORY BENEFITS

A. Preference in Hiring

B. Construction Worker Benefit

VI. ADMINISTRATIVE PROCEDURES

A. 120-Day Notification

B. Develop Baseline Data

C. Analyze Mission Requirements

D. Identify Positions Excess to Future Requirements

E. Stakeholder Involvement

F. Develop Voluntary Separation Program

G. Plan Approval

H. Involuntary Separation

I. Out placement Assistance

J. Budgeting for Plans

Appendix A

Office of Worker and Community Transition Contacts

Work Force Restructuring Field Contacts

Apendix B

Section 3161 of the National Defense Authorization Act for

Fiscal Year 1993

Section 3163 of the National Defense Authorization Act for

Fiscal Year 1993

Appendix C

Listing of Defense Nuclear Facilities

Appendix D

Job Attachment Test

Appendix E

Example of Form for Establishing Preference in Hiring

Appendix F

Sample Release for Use in Work Force Restructuring Programs

Interim Planning Guidance for Contractor Work Force Restructuring

I. Introduction

This planning guidance was prepared by the Department of Energy's

Office of Worker and Community Transition (the Office) to plan for and

mitigate the impacts of changes in the Department's contractor work

force. The Office is directed to assure fair treatment of all

concerned, while at the same time recognizing the unique conditions at

each site and in each contract.

This guidance replaces guidelines issued by the Task Force on

Worker and Community Transition on March 24, 1994. It is a product of

the Department's experience over the past 2 years, and an extensive

process of stakeholder and public involvement in shaping our worker and

community transition policies. This process included national meetings

on June 11, 1993, and on November 15 and 16, 1994. Comments were

solicited from the public on a report, issued by Under Secretary

Charles B. Curtis on August 24, 1994. Comments were also solicited on

earlier versions of this guidance issued on April 22, 1993, and March

24, 1994. Additional stakeholder meetings were held on April 20 and 21,

and September 13 through 15, 1995.

This guidance contains revisions and technical corrections to the

document originally distributed on April 5, 1995. The Office intends to

revise this interim guidance from time-to-time as warranted, based on

comments received through notice and publication in the Federal

Register, and other stakeholder comments and consultation.

Except where otherwise noted, this guidance is not prescriptive.

Cognizant field organizations have responsibility for planning work

force restructuring. The Department's field organizations are in the

best position to conduct full consultation with affected stakeholders

on these plans and to understand the unique needs of work force

restructuring at field facilities. Points-of-contact at each field

organization are listed in Appendix A.

II. Legislative Provisions

On April 21, 1993, Secretary of Energy Hazel R. O'Leary created a

task force ``to coordinate worker and community transition assistance

as the Department goes through periods of changing priorities.'' In

large measure, the task force was created to implement section 3161 of

the National Defense Authorization Act (the Act) for Fiscal Year 1993.

For reasons of fairness, the Secretary directed that the process set

forth in section 3161 should be applied to the extent practicable

wherever work force restructuring takes place in the Department.

Section 3161 requires the Secretary of Energy to develop a plan for

restructuring the work force for a defense nuclear facility whenever

there is a determination that a change in the work force is necessary.

The plan is to be developed in consultation with local, state, and

national stakeholders, and submitted to Congress 90 days after notice

of a planned work force restructuring has been given to the affected

employees and communities. A work force restructuring plan must be

updated annually and should include an evaluation of the implementation

of the plan during the preceding year.

Section 3161 of the Act provides specific objectives to guide the

preparation of the plan to minimize worker and community impacts. The

plan should provide at least 120 days notice to employees and

communities prior to beginning any involuntary separations. Reductions

should be accomplished, when possible, through use of retraining, early

retirement, attrition, and other options that minimize layoffs. To the

extent practicable, the Department should offer a hiring preference to

involuntarily separated employees. Employees should, to the extent

practicable, be retrained for work in environmental restoration and

waste management. Employees transferred to other Department facilities

should receive relocation assistance. Terminated employees should be

assisted in obtaining reemployment assistance, including Out placement

services,

[[Page 8597]]

appropriate retraining and education opportunities. The Department

should provide local impact assistance to affected communities.

Relevant sections of the Act are available from the sources listed in

Appendix B.

Pursuant to section 3163, ``defense nuclear facilities'' for the

purposes of section 3161 include the following types of facilities

under the control or jurisdiction of the Secretary of Energy: atomic

energy defense facilities involving production or utilization of

special nuclear material; nuclear waste storage or disposal facilities;

testing and assembly facilities; and atomic weapons research

facilities. Department of Energy facilities that have been determined

to be defense nuclear facilities for the purposes of section 3161 are

listed in Appendix C.

III. General Guidance

All work force changes, regardless of cause, should be managed by

the cognizant field organization consistent with the objectives of

section 3161 of the Act, and DOE Order 3309.1A covering Reductions in

Contractor Employment.\1\ Each plan should be developed by the field

organization consistent with budget constraints, contractual provisions

or other obligations. All aspects of a plan, including the mix and

level of benefits offered, should be developed in consultation with the

stakeholders at the affected facility, and other appropriate

stakeholders to ensure, among other things, the judicious expenditure

of public funds. The Office encourages field organizations to utilize

the combination of work force restructuring mechanisms that will most

effectively accomplish the restructuring objectives.

\1\ Order 3309.1A is being revised to incorporate the

requirements of section 3161 of the Act and the organizational

changes resulting from the creation of the Office of Worker and

Community Transition.

---------------------------------------------------------------------------

A. Threshold for Plans

Work force restructuring plans should be developed where changes in

the nature or structure of the work force may affect 100 or more

employees at a site within a 12-month period. Even when a full plan is

not required, the objectives of section 3161 should be followed, to the

extent practicable within available resources. While the objectives of

section 3161 should be considered in cases of smaller reductions, the

formal process required by the law is not necessary. Approval from the

Office and the responsible program and funding office should be

received before any work force change is implemented.

B. Timing of Plans

Upon determining that a change in the work force is necessary, the

appropriate field organization should immediately begin planning for

the restructuring, and develop a schedule for preparing a work force

restructuring plan, if required. One of the objectives of the Act is to

give at least 120 days notice to the employees before involuntary

layoffs begin. Although a 120-day advance notification may not always

be possible, every effort should be made to meet or exceed this

important objective. Field organizations should work with the Office to

develop a schedule for plan development that meets the needs of the

site. The work force planning described below should occur on a

timeline that supports this advanced notification objective, to the

extent practicable.

C. Work Force Planning

The Office is developing an integrated process for a work force

planning system, pursuant to the Secretary's direction. In the interim,

we will employ the best possible work force planning practices

available, consistent with the objectives set forth below.

Developing a baseline assessment of the skills and capabilities of

the current work force should be the initial step in the work force

planning process. Field organizations should then consider the future

missions and budget estimates to project the required work force skills

needed to achieve the desired outcomes. Strategies should be developed

for making the transition from the current baseline to the projected

need, including retraining, voluntary separation incentives, and

reductions-in-force. Particular attention should be directed to

ensuring that workers with critical skills are retained.

D. Local Impact Assistance to Communities

The work force restructuring plan should be developed in

coordination with, and in support of, the economic development

objectives of nearby communities. Therefore, local officials and

institutions involved in mitigating social and economic impacts

anticipated to be caused by the Department's actions should be

consulted in development of the plan. The plan should provide

demographic and skills information about the affected work force, as

well as other data that could help frame the community's economic

development challenges and options. It should also discuss benefits,

such as education and training, that will be provided to eligible

employees that can augment community-based economic development

initiatives. Finally, it should address ways the Department can support

local business creation, expansion, and attraction activities. Separate

guidance was issued August 24, 1994, on economic development efforts

that may be supported by the Worker and Community Transition Program.

Copies of this guidance may be obtained from the Office.

E. Stakeholder Input to Plans

Consultation with local, State, and national stakeholders, as well

as State and local Government officials, is an essential element of the

work force restructuring process. Input should be solicited and given

consideration at appropriate points throughout the development of plans

for work force restructuring. When possible, the Office recommends that

field organizations make this Interim Planning Guidance available to

their stakeholders in advance of the 120-day notification. This will

give stakeholders a perspective on the parameters within which plans

are prepared.

F. Role of Counsel

Work force restructuring raises many legal issues under a wide

variety of statutes. Failure to comply with applicable laws can have

significant consequences for both the Department and its contractors.

It is therefore essential that counsel be involved in the formation and

execution of the plans. Failure to present properly structured plans to

the Office can result in delay and increased cost. Therefore, field

organizations should include counsel as a member of the planning team.

G. The Role of DOE Contractors

While the Department may seek the assistance of its contractors in

developing work force restructuring plans, the plans are Department of

Energy products. In general, it is the Department's policy to make

information available to the public that is available to the operating

contractors and has bearing on the plans, unless such information is

protected by law or regulation.

Department contractors are not identified by section 3161 of the

Act as stakeholders who must be consulted in the preparation of work

force restructuring plans. The exclusion of these contractors would be

inappropriate, however, as they may be the principal resource of

institutional knowledge on many restructuring issues, and may be the

only source for certain information necessary for

[[Page 8598]]

preparing a plan. They are the employers of the affected employees and

are generally the administrators of the pension and other benefit plans

involved. They are responsible for fulfilling their obligations to

bargain with the collective-bargaining representatives of their

employees regarding changes in contracts, pension plans, other

benefits, and any other mandatory bargaining issues necessitated by the

restructuring plan, as well as for obtaining any waivers of claims or

reemployment appropriate in any given situation. However, the

Department is responsible for developing the plans.

H. Approval of Plans

By law, the Secretary submits work force restructuring plans to

Congress, and thus is the official responsible for final approval.

Involuntary separations should be carried out consistent with DOE Order

3309.1A, which requires prior notification to Headquarters. All notices

of involuntary separation that affect more than 100 management and

operating (M&O) employees at a single site require Secretarial

approval. Early retirements and other voluntary separations may begin

before final plan approval, after written approval by the Office, in

order to reduce the number of involuntary layoffs. Draft plans should

be submitted to the Office for concurrence prior to their release to

stakeholders.

I. Plan Updates

Within a year of a work force restructuring plan's submission to

Congress, or earlier if events suggest that it would be appropriate,

the cognizant field organization should submit an update of the plan to

the Office for the Secretary's approval and submission to Congress. The

plan update, which is required by law, should evaluate the plan's

implementation, including the number of workers receiving each benefit

and the overall cost, and cost per participant of that benefit,

together with information on retraining of retained employees, and

subsequent reemployment of displaced workers. These plan updates should

be provided to the Office for submission to the Congress even when a

new plan is under development.

J. Funding for Plans

Limited funds are available for implementing the objectives of

section 3161 of the Act for defense nuclear facilities, including

economic development assistance. Funding for work force restructuring

plans at facilities other than defense nuclear facilities should be

sought from the program responsible for the activities subject to the

work force restructuring. Likewise, benefits for workers at defense

nuclear facilities affected by the changes due to business or

efficiency decisions should be sought from the appropriation of the

program making the change. These decisions include initiatives such as

privatization, commercialization and reductions aimed at achieving

improved efficiency.

The allocation of funds to mitigate the impact of restructuring on

the workers decreases the funds available for continuing program

responsibilities and economic development. No ``standardized''

allocation of funds is contemplated as it is highly unlikely that the

needs of any two work forces and communities undergoing a restructuring

would be the same.

IV. Specific Benefits for Consideration

After work force planning has identified the classifications of

workers at risk, consideration of specific benefits to mitigate

involuntary separations should take into account available funding and

the status of affected employees. In implementing the objectives of

section 3161 of the Act, the Department recognizes a special

responsibility to minimize the impact of work force restructuring on

employees who were employed before September 27, 1991, the day

President Bush announced the first unilateral reduction of the Nation's

nuclear weapons stockpile, and the date the Department has chosen as

the end of the Cold War. Appendix D contains the job attachment test

that has been developed for determining those employees who

participated in efforts to maintain the Nation's nuclear deterrent

during the Cold War.

In developing a work force restructuring plan, the following

benefits may be considered for affected workers. If adopted, specific

offers and conditions should be described in the plan.

A. Early Retirement

The potential loss of employees with skills critical to achieving

Departmental missions is a primary consideration in determining the

appropriateness of early retirement incentives. When early retirement

incentives are offered, it has generally been the Department's practice

that the incentives are made available to all eligible employees. It is

legally permissible to limit benefits by reasonable, objective

categories such as job classification if such limitations do not give

rise to unlawful discrimination or disparate impact of any kind.

Enumeration of employees by name, or criteria having substantially the

same effect, is not generally considered reasonable, unless the

employer has utilized written, objective and neutral criteria in the

selection process. Early retirement incentive programs must be

consistent with applicable contracts.

All proposed retirement incentives including lump sum payments,

additional years of service or reduction in age penalties, should be

analyzed with respect to the likely candidates to accept, and potential

effects on critical skills. Employee Retirement Income Security Act

(ERISA), Age Discrimination In Employment Act (ADEA), and other related

legal concerns must be considered and resolved early in the process. It

is essential that proposed early retirement programs receive

appropriate actuarial validation establishing that they do not result

in discrimination in favor of highly compensated employees within the

meaning of the Internal Revenue Code, or in discrimination on the basis

of any protected category of employees with respect to employment laws

such as ADEA, Title VII of the Civil Rights Act, and the Americans with

Disabilities Act.

Employees receiving an incentive to retire should not receive

educational assistance or relocation assistance. It is anticipated that

the value of early retirement incentives will exceed the value of the

benefits provided to other separating employees. Any lump sum

incentives paid to retirees in lieu of pension formula enhancements may

not exceed his or her previous year's salary consistent with Department

of Energy Acquisition Regulation Part 970.3102-2(1)(6) and Federal

Acquisition Regulation Part 31.205-6(j)(7).

The cognizant field organization should adopt as part of its plan

mechanisms to ensure that individuals accepting an early retirement

incentive are not inappropriately rehired. Such mechanisms could

include post-employment restrictions, requiring repayment of the

incentive, and limiting the number of waivers of any such restrictions

for critically skilled individuals.

B. Voluntary Separation Incentives

Voluntary separations may be encouraged by offering severance, or

enhanced severance payments. Applications for voluntary separation may

be refused in order to preserve critical knowledge or skills. Those

volunteering for separation may be offered educational assistance, and

relocation assistance, and they may

[[Page 8599]]

receive Displaced Workers Medical Benefits.

The cognizant field organization should adopt as part of its plan

mechanisms to ensure that individuals accepting a voluntary separation

incentive are not inappropriately rehired. Such mechanisms could

include post-employment restrictions and require repayment of the

incentive upon rehire. Individuals with critical skills should not be

offered voluntary separation incentives unless sufficient personnel are

available to fulfill mission requirements.

C. Educational Assistance for Separated Employees

Educational assistance should be considered for employees being

voluntarily or involuntarily separated, except for employees accepting

early retirement incentives. It is recommended that tuition assistance,

and other reasonable and necessary educational expenses, be limited to

not more than a total of $10,000 over a period of not more than 4

years.

D. Relocation Assistance

Relocation assistance should be considered for workers being

terminated and for those voluntarily separating, except for employees

accepting early retirement incentives. Such assistance should

particularly be considered for employees involuntarily separated who

are hired at other Department facilities, but who do not qualify for

relocation assistance under the hiring contractor's policies. It is

recommended that relocation assistance include actual and reasonable

expenses for transportation, movement of household goods, and temporary

living accommodations within a range of $2,000 to $5,000.

E. Retraining for New Missions Including Cleanup

Work force planning should identify training needs and provide such

training to transition the existing work force to new missions as early

in the process as possible. The Office recommends that all retraining

for cleanup or other missions meet the following practicability test:

the training should be aimed at jobs for which vacancies are expected

in the near term; and the training should be able to be completed

within a reasonable time-frame in relationship to those vacancies (not

more than 6 months), and at a reasonable cost (not to exceed $10,000).

The suggested $10,000 cap includes tuition, course materials and

related instructional costs, but not trainee salaries.

F. Displaced Workers Medical Benefits

Displaced Workers Medical Benefits, while not specifically

mentioned in the objectives of section 3161 of the Act, should be

offered to all employees of M&O or other prime contractors to the

Department as an extension of current medical benefits eligibility.

Department of Energy Acquisition Letter No. 93-4, dated April 7, 1993,

establishes guidelines for implementing this program. \2\

\2\ Subsequent to the issuance of Acquisition Letter No. 93-4,

the Displaced Medical Benefits Program was expanded by memoranda to

field organizations dated August 12, and December 2, 1993. The

Department is currently revising Acquisition Letter No. 93-4 based

on these memorandums. All separating employees of M&O contractors

who were eligible for medical benefits prior to their separation

from employment are eligible for continued coverage under the

Displaced Workers Medical Benefits Program regardless of whether

they meet the section 3161 job attachment test.

---------------------------------------------------------------------------

Eligible employees include voluntarily and involuntarily separated

employees of M&O contractors who are not otherwise eligible for such

coverage under another program. Under certain circumstances, an

employee may be able to continue coverage, at the employee's expense,

for pre-existing medical conditions excluded from coverage under

another plan for which he or she becomes eligible. Retirees who are

provided medical coverage through retirement programs or Medicare are

not eligible for this program.

During the first year following separation, the contractor will

continue to pay its portion of the former worker's medical premium, and

the former employee will pay his or her normal share. During the second

year, the former employee will pay half of the Consolidated Omnibus

Budget and Reconciliation Act (COBRA) rate. During the third and

subsequent years, the former employee will pay the full COBRA rate.

V. Mandatory Benefits

The benefits described below must be offered to eligible employees:

A. Preference in Hiring

Section 3161 of the Act provides that, to the extent practicable,

terminated employees at a defense nuclear facility should receive

preference in filling vacancies in the work force of the Department of

Energy and its contractors and subcontractors. The Department has

determined that employees must be identified as having helped maintain

the Nation's nuclear deterrent during the Cold War in order to qualify

for this preference. The preference should be honored by all prime

contractors, and by subcontractors whose contracts with the Department

equal or exceed $500,000 in value.

The Department has established the following criteria for

determining eligibility for the hiring preference: the individual must

be a former employee (1) who was involuntarily terminated (except if

terminated for cause); (2) who meets the eligibility standards in

Appendix D; and (3) who is qualified for the job at the time the work

is to begin. Where qualifications are approximately equal, eligible

individuals will be given preference in hiring. However, the preference

will be administered consistent with applicable law, regulation, or

executive order, and collective bargaining agreements. This preference

is not immediately applicable in situations where positions become

available through an outsourcing action or follow-on contract in which

the current employees should first be offered their same or similar job

with the replacement contractor in order to avoid a layoff.

An individual's hiring preference continues until termination by

the action (or inaction) of that individual. Initially, and on an

annual basis thereafter, eligible individuals must certify their desire

to retain their hiring preference. The Office has developed a

Preference in Hiring Eligibility Form for this purpose (Appendix E)

which eligible individuals should submit to their DOE field

organization. Actions that would terminate an individual's hiring

preference include: voluntary termination or termination for cause from

a position that was obtained through the exercise of the preference, or

failure to comply with the annual certification requirement.

The Department developed the Job Opportunity Bulletin Board System

(JOBBS) to simplify implementation of the hiring preference by eligible

individuals, and by contractors and subcontractors. Those individuals

who have applied for and have been determined to be eligible for the

preference may have their resumes entered into JOBBS where they will be

specifically identified as job seekers with hiring preference.

Companies doing new hiring for Department of Energy work should place

job announcements into JOBBS. Contractors and designated subcontractors

(those whose DOE contracts equal or exceed $500,000 in value) will be

instructed by the cognizant field organization to first seek eligible

workers among those with the hiring preference listed in JOBBS. All

other subcontractors should be encouraged to use JOBBS when hiring for

DOE work. Eligible individuals who

[[Page 8600]]

do not want to enter their resumes into JOBBS are responsible for

informing potential employers of their preference.

Each field organization should develop procedures to ensure that

the hiring preference is being honored by all prime contractors and

designated subcontractors. The procedures should state that eligible

individuals have the responsibility to: (1) Apply for the preference by

submitting the Preference in Hiring Eligibility Form to the DOE field

organization along with any necessary documentation for verification of

their eligibility; (2) inform potential employers of their preference

status; and (3) certify their continuing status through annual

submission of the Preference in Hiring Eligibility Form. Field

organization procedures should also describe how JOBBS can be used by

eligible individuals to help fulfill these responsibilities and to aid

their search for job openings that should honor the preference. The

procedures may establish criteria for use by hiring contractors who

must choose among eligible workers who are equally qualified for the

same job opening. One example would be assigning a higher priority to

candidates within commuting distance of the new job. The procedures

should also describe how potential disputes will be resolved. The

Office will review the field organization procedures. The procedures

should be posted where other material of worker interest is normally

posted, such as employee bulletin boards.

The Department encourages negotiation to incorporate the hiring

preference by agreements for division of work and arrangements for

accommodations of internal union rules that might otherwise be

obstacles to implementation of flowdown of the hiring preference to

applicable subcontracts. Field organizations may facilitate

implementation of the hiring preference by developing subcontract award

criteria or performance measures and related fee incentives based on

the hiring preference.

B. Construction Worker Benefit

Construction wage rates and benefits are structured to take into

account the intermittent nature of construction work. In recognition of

this, early plans generally limited benefits for construction workers

to tuition assistance, outplacement support, preference in hiring and

relocation assistance. However, it has been noted that many

construction workers have maintained long-term relationships with the

Department, and structured their lives around work at our facilities.

Many of these relationships, which had been expected to continue, have

been terminated as the general level of construction work declined

following the end of the Cold War.

The Department has determined that construction workers who meet

the job attachment test (Appendix D) may elect to receive a one-time

benefit. In return for that benefit, these construction workers, like

other employees, may be required to waive the hiring preference. The

one-time benefit should be consistent with the employer's established

separation pay benefit, if applied, but should not exceed 6 weeks at

base pay rates. The specific amount of this benefit, as well as other

benefits for construction workers should be defined during the plan

development and stakeholder consultation process. The Office does not

suggest that special payments should be made into either pension or

health and welfare benefits funds for these workers. The Office does

not view this special benefit as a precedent-setting action for the

construction industry since this benefit carries out the intent of

legislation that uniquely applies to the Department of Energy's

Federal, contractor and subcontractor work force.

Construction workers who receive the special benefit should be

restricted from employment at a Department facility for a period not

less than the period equal to the salary value of the benefit without

specific approval of the Department or pro rata repayment of this

benefit.

VI. Administrative Procedures

This section describes the administrative procedures that should be

followed in developing a new work force restructuring plan or for

modifying an existing plan.

A. 120-Day Notification

Field organizations should notify workers and communities of

impending work force restructuring at least 120 days prior to making

any involuntary separations. The cognizant field organization should

issue a general announcement to all employees, employee

representatives, and to the community at large that work force changes

are required at the facility. The draft announcement should be

coordinated with the Office. We will seek concurrence from

Congressional, Public, and Intergovernmental Affairs and the

appropriate program offices. Field organizations should allow at least

1 week for Headquarters approval of 120-day announcements.

It is important that the notice emphasize that the estimate of

employees affected set out in the 120-day notice is a good faith

estimate based on the information available at the time. The notice is

the beginning of a downsizing process; this process and the related

budget issues are necessarily fraught with uncertainties, making it

difficult to predict the exact number of employees that will be

affected. It is recognized that a 120-day notification may not be

practicable under certain extraordinary circumstances; however, as much

advance notice should be given as possible.

B. Develop Baseline Data

Field organizations should establish and maintain a baseline

employment database that categorizes the total number of personnel

employed on-site by contractor, program funding source and skill mix.

As a basis for categorizing skills, the Office encourages field

organizations to utilize the Common Occupational Classification System

to ensure consistency across the Department. The baseline should also

contain the number of people employed on a temporary or intermittent

basis, and by subcontractor or support service contractors. Field

organizations should provide this information to the Office on a

quarterly basis. Field organizations are responsible for carrying out

the data collection and analysis. Once the baseline information is

established, the Office intends to conduct an independent audit to

ensure data reliability, as appropriate in particular circumstances.

C. Analyze Mission Requirements

Field organizations should analyze, and revise as necessary, future

mission requirements and the work force skills required to carry out

those missions. Appropriate program offices are responsible for

defining the parameters of the future missions. New or modified work

force restructuring plans should include a detailed description of the

methodology and analysis used to define the work force necessary to

execute the missions.

D. Identify Positions Excess to Future Requirements

Based on the current work force, and the work force necessary to

carry out future missions, the plan should identify the classification

of employees that should be:

1. Retained because they possess critical skills;

2. Retained with little or no retraining;

3. Retained with appropriate retraining; and

4. Considered for voluntary separation incentives.

[[Page 8601]]

The analysis should also identify those job skills that are

unlikely to be satisfied by existing workers.

E. Stakeholder Involvement

Early involvement of stakeholders in developing a work force

restructuring plan is essential to identify and address issues and

concerns that might impede the implementation of the plan. Stakeholders

should also be given appropriate opportunity to comment on drafts of

any new or modified work force restructuring plan as soon as the draft

plan has been cleared by the Office for release to the public. The

Office will endeavor to concur on draft plans within 2 weeks of

submission.

Stakeholder input may be received at public meetings, or through

written or oral comments. Comments and suggestions of all stakeholders

are important and should be considered in developing the final plans

and incorporated where appropriate. For those comments and suggestions

not incorporated in the draft plans, a brief explanation of the reason

for not doing so should be documented. Every effort should be made to

make the plan approved by the Secretary available to each stakeholder

who commented on an earlier draft of the plan. A discussion of

stakeholder involvement should be included as part of each plan.

F. Develop Voluntary Separation Program

After appropriate work force planning has been completed, field

organizations should consider voluntary separation incentives to

facilitate work force transition. Voluntary incentives must be approved

in writing by the Office. Such approval can be sought, and the

incentive can be offered, prior to completion of any new or modified

work force restructuring plan.

Retirement incentives, accompanied by the appropriate analysis,

should be presented for approval to the Office. The Office will

coordinate analysis and evaluation of proposals with the Office of

Procurement and Assistance Management, the Office of General Counsel,

and the program office. Employees being offered early retirement or

voluntary separation incentives must receive sufficiently specific

information to satisfy ERISA requirements.

Early retirement incentives will be evaluated for their consistency

with maintaining critically needed skills and any request should

include a full justification in conformance with this requirement.

Field organizations should provide an assessment of the costs and

benefits of the proposed voluntary incentives, particularly in work

force transitions designed to increase organizational efficiency. Field

organizations should plan to provide at least 2 weeks for review by the

Office and appropriate headquarters organizations.

Voluntary separation programs should not be offered to employees at

the same time as early retirement programs, except in special

circumstances and with prior approval. Voluntary incentive programs

should be completed prior to any involuntary separations.

In exchange for the enhanced benefits employees receive in a

voluntary separation program, it is the Department's policy to obtain

from employees who separate under such a program a release of claims

related to their employment and separation. The Department has adopted

a model form of release, which is provided in Appendix F. Variations

from the model may be required by state law or other special

circumstances. However, departures from the model will require

Department approval, including from the Office of General Counsel.

G. Plan Approval

The Office will coordinate the appropriate review by other

Headquarters offices before concurring with plans or approving requests

to implement voluntary incentive programs. In general, the Office will

seek review from the affected program office, General Counsel, Field

Management, and Human Resources and Administration. Field organizations

should allow 1 month for Secretarial approval of final Work Force

Restructuring Plans.

Thirty copies, plus 1 reproducible master, of the final plan should

be submitted to the Office for subsequent submission by the Secretary

to the appropriate Congressional committees and delegations from

affected States. The responsible field organization should also make

distribution to interested local stakeholders, and to the points-of-

contact at each cognizant field organization. The Office will make

additional copies, if necessary, from the master for distribution

within Headquarters and to interested national stakeholders.

H. Involuntary Separation

In general, involuntary separation notices may not be given until

after Secretarial approval. The notices should identify the specific

numbers and job titles to be laid off. Each affected individual should

be notified of his or her termination. Involuntarily separated

employees shall be fully advised of any benefits or services for which

they are eligible. Appropriate labor representatives should be notified

and letters prepared for local, county and state governments.

If layoffs are required that fall under the provisions of the

Worker Adjustment and Retraining Notification Act (WARN), the employers

must give the affected employees written notice of the layoffs at least

60 days prior to the date of the intended layoff. Employers may conduct

the involuntary layoff by providing written notice to the affected

employees that their termination date will occur 60 days thereafter.

Compensation will continue during the 60-day period following the

notice and where appropriate, employees may be excused from some or all

duties during that period. If, during the 60-day period, an employee

successfully obtains new employment, the employee must terminate the

current employment relationship before beginning the new job, at which

time the remaining salary payments shall cease. If this salary was paid

in a lump sum, the pro rata share attributable to the period after the

employee commences the new employment should be repaid. Repayment terms

should be established within the restructuring plan and explained to

employees during the exit interview process.

As a goal, all affected employees should receive their individual

notification 60 days before layoff. When this is not possible, and the

work force change is not subject to the provisions of the WARN Act,

affected workers should receive as much layoff notice as practicable,

but not less than 14 days. Intermittent workers are terminated when

their work is completed.

I. Outplacement Assistance

Field organizations may provide Out placement assistance (including

training and education) to voluntarily separated employees as soon as

they exercise that option, and to involuntarily separated employees as

soon as they are notified. Appropriate outplacement assistance can also

be made available to employees who may be at risk after the 120-day

announcement has been made. Out-placement assistance should be planned

in advance and should be appropriate in light of the number of

employees expected to need such assistance. Field organizations are

encouraged to track the employment, education, and insurance status of

displaced workers for at least 1 year after separation.

[[Page 8602]]

J. Budgeting for Plans

Plans must include a budget estimate for each initiative or benefit

planned for mitigating impacts on workers. Budget estimates should be

based on a realistic projection of the number of workers who will

participate in each initiative and reflect the best cost estimates

available. Estimated incremental costs to pension funds for early

retirements should be based on actuarial estimates. It is not

acceptable to request funds based simply on maximum possible

participation in each initiative or benefit. For planning purposes, an

average cost of $15,000 to $25,000 per position eliminated is a

reasonable range for guiding decisions about the range of benefits

offered. Where work force restructuring is justified by business

efficiency decisions, the budget estimates should be accompanied by

savings estimates and the proposed use of those savings. In general,

funding authorizations will be made following final approval of a plan.

Funding authorizations for certain initiatives, such as those

encouraging voluntary separations, may be made earlier.

Appendix A--Office of Worker and Community Transition Contacts

Director:

Bob DeGrasse--202-586-7550, FAX 586-8403

Deputy Director:

Terry Freese--202-586-5907, FAX 586-8403

Work Force Restructuring:

Terry Freese--202-586-5907, FAX 586-8403

Lew Waters--202-586-4010, FAX 586-8403

Work Force Planning:

Debby Swichkow--202-586-0876, FAX 586-8403

Lew Waters--202-586-4010, FAX 586-8403

Labor Relations:

Lyle Brown--202-586-0431, FAX 586-8403

Deborah Sullivan--202-586-0452, FAX 586-1540

Community Transition:

Bob Baney--202-586-3751, FAX 586-1540

Mike Mescher--202-586-3924, FAX 586-1540

Debby Swichkow--202-586-0876, FAX 586-8403

Public Participation:

Laurel Smith--202-586-4091, FAX 586-8403

Work Force Restructuring Field Contacts

Felix Ortiz, Albuquerque Operations Office--505-845-4207, FAX 845-

4715

Elaine Kocolowski, Chicago Operations Office--708-252-2334, FAX 252-

2919

Luella Bennett, Idaho Operations Office--208-526-1913, FAX 526-5969

Bob Agonia, Nevada Operations Office--702-295-1005, FAX 295-1876

Bill Truex, Oak Ridge Operations Office--423-576-0662, FAX 576-6964

Harry Printz, Oakland Operations Office--510-637-1829, FAX 637-2008

Ken Briggs, Ohio Field Office--513-865-4267, FAX 865-4312

Dom Sansotta, Richland Operations Office--509-376-7221, FAX 376-5335

Lenora Lewis, Rocky Flats Field Office--303-966-4263, FAX 966-3321

Dave Hepner, Savannah River Operations Office--803-725-1206, FAX

725-5968

Gil Gilyard, Savannah River Operations Office--803-725-7645, FAX

725-7631

Pat Lillard, Kansas City Area Office--816-997-3348, FAX 997-5059

Alan Goetz, Pinellas Area Office--813-541-8114, FAX 541-8370

Gene Gillespie, Portsmouth Site Office--614-897-2001, FAX 897-2982

Jimmie Hodges, Paducah Site Office--502-441-6800, FAX 441-6801

Appendix B--Statement of Availability

Sections 3161 and 3163 of the National Defense Authorization Act

for Fiscal Year 1993 (Public Law 102-484, October 23, 1992) are

available from the Superintendent of Documents, the Government

Printing Office, the Office of the Federal Register, by contacting

Laurel Smith from the Office of Worker and Community Transition,

Department of Energy or on the Office of Worker and Community

Transition Home Page under ``Documents for Review and Comment.''

(http://www.stat-usa.gov/owct.html)

Appendix C--Listing of Defense Nuclear Facilities

The list below reflects facilities receiving funding for Atomic

Energy Defense activities of the Department of Energy, with the

exception of activities under Naval Reactor Propulsion. It is

recognized that these facilities have varying degrees of defense

activities, ranging from a total defense dedication to a very small

portion of their overall activity. This may cause certain

difficulties in implementing the intent of the section 3161

legislation. Regardless, this listing will be used by the Office for

possible application of funding received for defense worker

assistance and community transition purposes.

Kansas City Plant

Pinellas Plant

Mound Facility

Fernald Environmental Management Project Site

Pantex Plant

Rocky Flats Environmental Technology Site, including the Oxnard

Facility

Savannah River Site

Los Alamos National Laboratory

Sandia National Laboratory

Argonne National Laboratory

Brookhaven National Laboratory

Lawrence Livermore National Laboratory

Oak Ridge National Laboratory

Nevada Test Site

Y-12 Plant

K-25 Plant

Hanford Site

Idaho National Engineering Laboratory

Waste Isolation Pilot Project

Portsmouth Gaseous Diffusion Plant

Paducah Gaseous Diffusion Plant

Appendix D--Job Attachment Test

In implementing the objectives of section 3161 of the Act, the

Department recognizes a special responsibility to minimize the impact

of work force restructuring on employees who participated in efforts to

maintain the Nation's nuclear deterrent during the Cold War. September

27, 1991, the day President Bush announced the first unilateral

reduction of the Nation's stockpile, has generally been recognized by

this Department as the end of the Cold War.

In general, employees who meet the job attachment test discussed

below should be eligible for most benefits offered in a work force

restructuring plan. However, the benefits offered at a specific site

should be tailored to specific conditions, to the demographics of the

workers at that site, and must be practicable and reasonable with

respect to budget constraints, contractual provisions, and other

obligations. Thus, those who meet the job attachment test are not

likely to be offered exactly the same benefits at all sites.

To identify employees who helped maintain our nuclear deterrent

during the Cold War, the criteria listed below should be followed at

all sites:

A. Regular Employees

1. Must have been working at a defense nuclear facility on

September 27, 1991;

2. Must have worked full-time (or regular part-time) at a facility

from that date through the date of the 120-day notification; and

3. Must accept a voluntary separation incentive or have been

involuntarily separated.

B. Intermittent Workers, Including Construction Workers

1. Must have worked at a defense nuclear facility on or before

September 27, 1991;

2. Must have worked at a facility within 180 days preceding the

work force restructuring notification;

3. Must have worked at a facility a total time, including time

worked prior to September 27, 1991, equivalent to an employee having

worked full-time from September 27, 1991 to the date of the 120-day

notification, or have actually worked the industry standard of full-

time from September 27, 1991 through the date of the 120-day

notification; and

4. Must have been affected by the announced restructuring within a

reasonable period of time (1 year is suggested). For an intermittent

worker,

[[Page 8603]]

this includes the interruption of a project before its anticipated

completion, or the completion of the assignment or project without

prospect for a follow-on assignment at the site where the employee had

a reasonable expectation of a follow-on assignment.

Appendix E--Example of Form for Establishing Preference in Hiring

Statement of Interest in Maintaining Section 3161 Employment

Eligibility

Name: ----------------------------------------------------------------

First Middle Last

Social Security Number: ______-____-______

Address: -------------------------------------------------------------

Street

----------------------------------------------------------------------

Apartment No.

----------------------------------------------------------------------

City State Zip

Telephone No. (______) ______-______

Date of Lay-off resulting from Work Force Restructuring:

________________ (Month/Day/Year)

Occupational Classifications held: -----------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

I hereby request that my name be placed, or retained, on the

Section 3161 Preference in Hiring List for the (site name) and be

considered for any job opportunities that may arise for which I am

qualified at this or any other Department of Energy site. I also

certify that I have not been terminated for cause from employment by

a Department of Energy Contractor or Subcontractor while performing

work at a Department of Energy site.

----------------------------------------------------------------------

Signature

----------------------------------------------------------------------

Date

----------------------------------------------------------------------

Appendix F--Sample Release for Use in Work Force Restructuring

Programs

Voluntary Separation Payment Program General Release and Waiver

This Voluntary Separation Payment Program, General Release and

Waiver (``Agreement'') is entered into by and between ____________

(``Employee'') and ____________ (``Employer''), as part of

Employee's voluntary election to terminate employment with the

Employer.

In Exchange for the Promises Set Forth Below, the Parties Agree

as Follows:

1. Employee voluntarily terminates his/her employment with

Employer effective ____________, 1995. Employee agrees not to seek

employment with or become employed at the ____________ Site by the

Employer or any other future or current contractor or subcontractor

at the Site for a period of ________ year(s) from the date of

Employee's resignation. This includes but is not limited to

temporary employment service contracts, general task order

assignments, indefinite quantity contracts, basic ordering

agreements, and consultant contracts. However, this does not

preclude Employee from employment with a company providing supplies,

equipment, materials, or commodities to the Site under a fixed-price

contract or purchase order.

2. Employee agrees that the Employer has no obligation to

reemploy Employee in the future, and Employee waives any recall,

rehire, or rehire preference rights, such as those that may arise

under Section 3161 of the National Defense Authorization Act for

Fiscal 1993. Employee agrees to perform all steps required by

Employer's policies and procedures at the separation of his/her

employment.

3. Except as set forth in paragraph 4 below, Employee, on behalf

of himself/herself and any person or entity entitled to sue on

Employee's behalf, waives and releases Employer, its parents,

subsidiaries, and affiliates, the Department of Energy, and their

employees, officers, directors, shareholders, agents, and successors

from any causes of action or claims, whether known or unknown, that

arise out of the Employee's resignation and separation of employment

with Employer and any causes of action or claims that arise out of

Employee's employment with Employer, up to and including the date of

Employee's resignation, under any federal, state or local law,

including but not limited to the Age Discrimination in Employment

Act, the Older Workers Benefit Protection Act of 1990, Title VII of

the 1964 Civil Rights Act, the Equal Pay Act, the Family and Medical

Leave Act, the Employee Retirement Income Security Act, and the

Americans with Disabilities Act, or applicable state or local law.

Employee will not assert any claim or cause of action released under

this agreement in any administrative or judicial proceeding.

However, Employee does not waive:

(i) Any causes of action or claims that arise out of Employee's

employment with Employer, up to and including the date of Employee's

resignation, that have been asserted in writing and filed with the

appropriate agency or court prior to the date on which this Program

was announced,\1\

(ii) Any rights or claims that may arise after the date this

Agreement is executed,

(iii) Any claims relating to pension or retiree health benefits

that currently may be accrued under the Company's standard

retirement program,

(iv) Any claims under any applicable state worker's compensation

laws, or

(v) Any claims for occupational injuries or illnesses arising

from Employee's employment with Employer that are not known or

reasonably knowable by the Employee at the time of the execution of

this Agreement.

5. In exchange for Employees' voluntary separation and execution

of this Agreement, Employer will give Employee the consideration and

benefits outlined in the description attached to this Agreement. The

identification number or other designation for the document

describing the benefits constituting consideration for this

Agreement should be inserted at this point.\2\

6. If Employee becomes employed as prohibited in paragraph 1 or

otherwise violates any provision of this Agreement, then, in

addition to any other remedies Employer has under this Agreement,

Employer may require Employee to repay payments or other benefits

under this Agreement, and Employee agrees to such repayment.

7. Employee has been advised to consider this Agreement and to

consult with an attorney of his/her choice, and Employee has had the

opportunity to do so. Employee has had the right to consider this

Agreement for a period of at least forty-five (45) days prior to

entering into this Agreement. Employee has the right to revoke this

Agreement for a period of seven (7) days following execution of this

Agreement by giving written notice to the local Human Resources

representative. If Employee revokes the Agreement, it shall not be

effective and enforceable and Employee will not receive any of the

benefits described in paragraph 5. Employee has read and understands

the terms and contents of this Agreement, and Employee freely,

voluntarily, and without coercion enters into this Agreement and

agrees to be bound by its terms.

8. This Agreement constitutes the entire understanding and

agreement of Employee and Employer and can only be modified in

writing agreed to by both parties.

9. Employee has received all of the information required to be

disclosed in these circumstances under the Age Discrimination in

Employment Act regarding who is covered by the Program, the

eligibility factors, the time limits of the Program, the ages and

job titles of everyone eligible for the Program, and the ages of

ineligible employees in the same job classification or

organizational unit.

Please Read This Agreement Carefully. It Contains a Release of

Known and Unknown \3\ Claims as Described in Paragraph 3, Above,

Subject To The Limitations Expressly Set Forth in Paragraph 4.

Agreed to:

----------------------------------------------------------------------

Employee/date

----------------------------------------------------------------------

{Employer}/date

Notes:

1. The issuing organization should insert at this point a

specific date on which the Separation Program involved was first

announced. In determining this date, the issuing organization should

consider the specificity of information provided to the public in

work force restructuring plans issued pursuant to section 3161, as

well as the announcement of the individual separation program

involved.

2. When this Agreement is used in association with early

retirement programs, the following language should be added here:

``Employer reserves the right to provide equivalent benefits in

another form in the unlikely event that any aspect of the Program is

improper under law.''

3. Counsel should check to be sure that this aspect of the Model

Release fully comports with applicable state or local law.

[FR Doc. 96-4401 Filed 3-04-96; 8:45 am]

BILLING CODE 6450-01-P